The Lagos State Government has asked the State House of Assembly to approve the issuance of a N200 billion bond to fund critical infrastructure projects, including rail expansion, healthcare facilities and major road projects.
The request was conveyed in two letters from Abayomi Oluyomi, the Commissioner for Finance, which were read during Tuesday’s plenary, according to the News Agency of Nigeria (NAN).
The proposed bond forms part of the state’s N1 trillion Debt and Hybrid Instruments Issuance Programme, designed to finance strategic capital projects across Lagos.
Oluyomi said proceeds from the proposed Series V N200 billion bond would be used to finance major infrastructure projects, including:
- The New Massey Children’s Hospital
- Lagos Island General Hospital
- Lagos Rail Mass Transit (LRMT) network
- Omu Creek Bridge
- Other strategic infrastructure developments across the state
He described the projects as essential to improving public services and supporting Lagos’ continued economic growth.
In a separate request to lawmakers, the commissioner sought approval for Lagos to participate in the Federation Account Allocation Committee (FAAC) Receivables Discounting Programme under the Lagos State Infrastructure Finance Fund.
The initiative would enable the state to leverage future FAAC allocations to access about $17 million in third-party financing, providing immediate liquidity for infrastructure and other capital projects.
Oluyomi noted that participation in the programme requires a formal resolution of the House of Assembly.
He assured lawmakers that the state would maintain prudent financial management while executing the proposed projects.
Following the presentation, Speaker Mudashiru Obasa referred both requests to the Joint Committee on Economic Planning and Budget and the Committee on Finance for detailed consideration, directing them to submit their report on Thursday.
Lagos has consistently accessed Nigeria’s domestic capital market to fund infrastructure development.
The state became the first sub-national government to issue a bond in Nigeria when it floated a N15 billion floating-rate bond in 2002.
Since then, it has raised:
- N80 billion in 2012;
- N87.5 billion Series II bond in 2017;
- N137.3 billion bond in 2020; and
- Returned to the market in November 2025 with plans to raise up to N200 billion under its N1 trillion debt programme.
According to the state government, previous bond issuances have either been fully repaid or remain on schedule, reinforcing Lagos’ credibility in the domestic debt market.
A significant portion of the proposed funding is expected to support the continued expansion of the Lagos Rail Mass Transit (LRMT) system.
The 27-kilometre Blue Line currently operates between Marina and Mile 2, while work continues on the second phase extending the line to Okokomaiko.
Commercial services have also begun on the first phase of the 37-kilometre Red Line between Agbado and Oyingbo, with construction progressing on the final stretch to Marina.
Meanwhile, Lagos is preparing to begin construction of the 68-kilometre Green Line, a proposed rail corridor linking Marina to the Lekki Free Zone. The estimated $3 billion project is being developed in partnership with the Ministry of Finance Incorporated (MOFI) and China Harbour Engineering Company (CHEC).
The Federal Government has already earmarked N146.14 billion as counterpart funding in the 2025 budget and proposed an additional N102.3 billion in the 2026 budget to support the Green Line.
The Blue, Red and Green rail corridors form part of the Lagos Strategic Transport Master Plan, which has been expanded from six to 11 rail lines and one monorail as the state seeks to build an integrated urban transport network and ease traffic congestion.
